TaxTMI 
TaxTMI 
1989 (6) TMI 55
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....nd product of ultramarine blue is a compound of sodium, aluminium, silicon, sulphur and oxygen and is ordinarily and predominantly used as an agent for temporarily brightening the whiteness of things particularly textiles. In the common parlance in the industry and trade it is known as Dhobi blue. It is elaborated by placing on record that this manufactured item if put in water does not dissolve but due to fineness of its constituent particles it disappears in the water and settles down in the bottom. In that process the water is only temporarily made blue because only of dispersions and no ablusions of the particles. It is strenuously asserted that the product is never ordinarily commercially used for dying, colouring or painting and it is not known in the commercial parlance or in the industry or trade dealing in the product as a dye in any manner whatsoever. Elaborating all these points in details the petitioner has come to this court on the ground that the respondents Central Excise authorities have no power and/or jurisdiction under Section 3 and/or other provisions of the Central Excises and Salt Act, 1944 to assess and/or levy and/or collect duty on any product unless the sa....
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....ence paying the Central Excise duty leviable on the product at the appropriate rate. It is also stated that in 1972 M/s. Seth Chemical Works by a letter requested the Collector of Central Excise to exempt their products from payment of excise duty and to direct refund of the duties so far paid by them. In reply to the said letter the Deputy Collector informed that the petitioner's representation had been forwarded to the Assistant Collector of Central Excise, Calcutta VIII Division with direction to pass necessary orders after observing principles of natural justice. They were further informed to prefer an appeal if they became aggrieved by such orders. The Assistant Collector of Central Excise passed orders on such representation by holding that the said product would be deemed as pigments and colours not otherwise specified and classified under the Central Excise Tariff Item 14(1)(5). Sometimes in August 1976 the petitioners disclosed that they have acquired the entire goodwill and the business and undertaking of the aforesaid partnership firm M/s. Seth Chemical Works and by a letter dated 24-6-1977 and 29-6-1977 the petitioner requested the respondents to recall, revoke, vacate ....
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....he principles of natural justice, inasmuch as, all the decisions made by the Department concerned have neither been disclosed to the petitioner nor been produced before this court for passing an effective judgment. 5. It is also argued on behalf of the petitioner that if it is found by this court that there is no legal sanction to realise excise duty, there is no other alternative but to restrain the respondents from collecting and/or realising such excise duty upon the product ultramarine blue and also to take effective steps to refund all the duties so realised from 1962-63 till 1976-77 and the amount as indicated in details in the writ petition. In support of the case for refund the petitioners have also referred to a number of reported decisions that in a proper situation the court should not only strike down the steps purported to have been taken by the respondents in collecting and/or realising the duties and in proper case the court should rise to the occasion to direct refund of the duties so illegally and irregularly realised and/or collected and there should not be any hesitation on the part of the court to pass necessary orders for refund as the petitioners are otherw....
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....cientific or technical meaning, but in a case where the technical or scientific meaning of a term does not differ from the sense in which it is understood by the people conversant with and dealing in the said product, the court can also consider the physical constituents of a product along with other evidence. The case reported in A.I.R. 1977 S.C. 32 was relied upon. By discussing in details the decision of the Gujarat High Court, it was found that while deciding the case neither the trial judge nor the Division Bench of the Gujarat High Court had any opportunity of considering the weight of the authorities which have been cited before the Single Bench of the court on behalf of the respondents. It was observed that the learned judges of the Gujarat High Court incidentally had declined to accept as authoritative publication of the Indian Standards Institution on the ground that the attention of the plaintiff's witnesses was not drawn to the same and the defendants did not examine any one from the Indian Standards Institution to explain the purpose for which the booklet had been published and to what extent the manufacturers were expected to follow. 7. Having considered the argume....